The WSJ journal published this article today in their real estate section about Vermont’s tough mortgage regulations. The article suggests that tougher mortgage regulations in Vermont has helped the state avoid the boom and bust cycle of the housing industry that is prevalent in the rest of the country.
However, I’m not necessarily convinced that government regulation should be credited with helping the state avoid significant problems in their housing/ finance industries.
I am a proponent of increasing financial education to our population as a fix to the long-term sustainability of our economy.
When I went looking on the internet for the “most educated state” I was not surprised to see Vermont be #1 for 2005 & 2006 (click this link to see the results) and Nevada, Arizona, and California to comprise 3 of the bottom 4 “smartest” states.
So, what do you think? Is regulation the answer? Or should we focus on educating our population on matters of personal finance? Please leave your comments below.